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You’re spending too much on truckload shipping services. What can you do to cut costs?

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If you're in charge of logistics management, you know how important it is to optimize your truckload shipping services. Truckload shipping is the most common and cost-effective way to transport large volumes of goods across long distances. But it can also be a major source of expenses and inefficiencies if you don't plan and execute it well. In this article, we'll share some tips on how to reduce your truckload shipping costs and improve your logistics performance.

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Rakesh Singh

Sr. Specialist, Supply Chain Operations @ FedEx l Linkedin Top Voice for Logistics Management and Warehouse Operations I

1 Analyze your shipping data

The first step to cut your truckload shipping costs is to collect and analyze your shipping data. You need to understand your shipping patterns, volumes, destinations, carriers, rates, and service levels. This will help you identify opportunities to consolidate shipments, negotiate better rates, choose the best carriers, and avoid unnecessary fees. You can use software tools or third-party consultants to help you with this analysis.

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2 Optimize your load planning

The next step to cut your truckload shipping costs is to optimize your load planning. You want to make sure you're using the right truck size and type for your shipments, and that you're filling them as much as possible. You can also use load optimization software to help you pack your goods more efficiently and securely. This will reduce the number of trucks you need, lower your fuel consumption, and minimize the risk of damage.

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Shahool Hameed

Operation Manager / Director
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I agree with the "optimization of loading" without ruin or damage (if perishable) of product. Prudent selection of (truck load or) shipping container would too reduce the cost how? Instance:: if we select the 20 feet container, suppose,the cost comes around 100 % for single unite with 100 products, on the other hand if we booked the 40 feet container, the doubled of products could be stuffed with 125% of cost (payments)only, instead of 200% of cost of 20 feet container. So, The company would be gained or saved more. My note: I used to encourage the labours to stuff more by providing refreshment between stuffing process,. especially in gunny bags stuffings. Similarly vessel type,break bulk or many more.. " Giving more Gaining More "

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3 Explore alternative modes

The third step to cut your truckload shipping costs is to explore alternative modes of transportation. Sometimes, you may find that using rail, intermodal, or less-than-truckload (LTL) services can be more cost-effective than truckload shipping, depending on your shipment size, distance, and urgency. You can also combine different modes to create a hybrid solution that meets your needs and budget. You can work with a logistics provider or a freight broker to help you find the best mode for your shipments.

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4 Leverage your network

The fourth step to cut your truckload shipping costs is to leverage your network of suppliers, customers, and partners. You can collaborate with them to share truck space, coordinate deliveries, and reduce empty miles. You can also join a freight network or a co-op program that connects you with other shippers who have similar shipping needs and destinations. This will help you increase your load utilization, access lower rates, and improve your service quality.

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5 Monitor your performance

The final step to cut your truckload shipping costs is to monitor your performance and adjust your strategy as needed. You need to track your key performance indicators (KPIs), such as on-time delivery, cost per mile, load factor, and customer satisfaction. You also need to get feedback from your carriers, drivers, and customers, and address any issues or complaints. You can use a transportation management system (TMS) or a dashboard tool to help you with this monitoring and reporting.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Rakesh Singh

Sr. Specialist, Supply Chain Operations @ FedEx l Linkedin Top Voice for Logistics Management and Warehouse Operations I
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I would recommend to outsource your transportation activity to a 3PL with advance technological capability. Someone who is having advance transport management system and provides you real time visibility from start to end. But still if you want to do it by yourself I will recommend you to focus on below points :- 1. Load capacity :- ensure optimum utilisation of vehicle space in case of FTL shipments. 2. Route planing :- ensure optimal route for efficient vehicle run. 3. For PTL deliveries use multiple career partners, monitor their performance on regular basis , do the PIN code/destination city wise performance analyses to choose the right partner.

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Sibi John

Downstream Marketing @ Nayara Energy | Dalmia Cement
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To cut truckload shipping costs, optimize routes using software, consolidate shipments for full truckloads, and negotiate rates with carriers based on volume. Leverage technology for tracking and monitoring, assess carrier performance regularly, and explore freight brokerage services for cost-effective solutions. Implementing just-in-time inventory systems, enhancing warehouse efficiency, and considering intermodal transportation options further contribute to cost savings. Companies like Walmart and Amazon successfully employ these strategies, negotiating favorable rates and optimizing logistics to reduce truckload shipping expenses.

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You’re spending too much on truckload shipping services. What can you do to cut costs?

1

2

3

4

5

6

1 Analyze your shipping data

2 Optimize your load planning

3 Explore alternative modes

4 Leverage your network

5 Monitor your performance

6 Here’s what else to consider

Logistics Management

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You’re spending too much on truckload shipping services. What can you do to cut costs?

1

2

3

4

5

6

1 Analyze your shipping data

2 Optimize your load planning

3 Explore alternative modes

4 Leverage your network

5 Monitor your performance

6 Here’s what else to consider

Logistics Management

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